The cost of doing business for asset managers has gone up since 2008, due to heightened regulation, he says. They also face more competition from cheaper online trading platforms and so called "passive funds".

However, this merger will probably cost around 900 jobs - about 10% of the combined workforce - he says.

'Less is more approach' needed for UK infrastructure

The government should take a "less is more approach" to UK infrastructure in its Budget on Wednesday, says Perry Noble, head of infrastructure at fund manager Hermes.

"The UK market is incredibly successful as a place to invest in infrastructure. Even after Brexit international investment remains strong," he says.

However, he'd like to see a more "frequent pipeline of smaller projects", rather than all the focus going to big schemes like Heathrow and HS2, which take ages to complete but "don't really move the dial" for investors or taxpayers in the short term.

Good morning

Good morning and welcome to Business Live.

Coming up, Peugeot's owners PSA are expected to confirm a deal to acquire the European operations of GM (including Vauxhall). It raises big questions about the future of GM's British plants, Ellesmere Port and Luton.

RBS is in court over claims a £12bn investor cash call in 2008 contained misstatements and omissions. Shareholders are seeking £4bn in compensation.

And we'll have highlights from the Geneva International Motor Show which kicks off today.